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2012 Census of Philippine Business and Industry - Transport and Storage for All Establishments : Final Results

Reference Number:

2014-98

Release Date:

Monday, December 29, 2014

Support activities for transportation industry leads Transport and Storage Sector

Based on the final results of the 2012 Census of Philippine Business and Industry (CPBI), there were 2,327 establishments engaged in Transport and Storage sector. Establishments with total employment (TE) of less than 20 represented 1,224 (52.6%) of the total establishments while 1,103 (47.4%) were establishments with TE of 20 and over.

Support activities for transportation topped the sector with 1,121 establishments or 48.2 percent, majority of which were engaged in freight forwarding services, customs brokerage and logistics. This was followed by industries engaged in other land transport and transport via buses industries with 577 establishments (24.8%) and 253 establishments (10.9%), respectively. Figure 1 shows the percent distribution of establishments by industry group in 2012.

Most of the establishments are located in National Capital Region (NCR)

On the regional level, more than half of the establishments were located in NCR with 1,324 (56.9%). Central Visayas followed with 217 establishments (9.3%) and CALABARZON came in third with 174 establishments (7.5%).

Support activities for transportation industry posts the highest employment

Employment for the sector reached a total of 149,277 in 2012. Almost all or 98.6 percent were paid employees (147,169). Establishments with TE of 20 and over employed 137,942 or 92.4% percent of the total employment while 11,335 workers or 7.6 percent were for establishments with TE of less than 20.

Among industries, support activities for transportation industry had the highest number of employees with 55,775 (37.4%). The transport via buses industry ranked second with 29,235 (19.6%) and other land transport, third with 19,879 (13.3%). Distribution of employment by industry group for the sector is shown in Figure 2.

Across regions, NCR was the top employer with 91,748 employees (61.5%). Central Visayas came second with 10,897 employees (7.3%) closely followed by CALABARZON with 10,190 employees (6.8%).

Support activities for transportation industry pays the highest compensation

The total compensation paid by Transport and Storage sector amounted to PHP39.7 billion, an equivalent of PHP269,446 average annual compensation. Compensation provided by establishments with total employment of 20 and over accounted for PHP37.8 billion or 95.4 percent of the total. On the other hand, establishments with total employment of less than 20, contributed PHP1.8 billion or 4.6 percent of the total compensation.

By industry group, the support activities for transportation paid the highest compensation of PHP15 billion (38.2%) for the sector. Passenger air transport industry came in second with PHP9.2 billion (23.1%) while sea and coastal water transport industry placed third with PHP4.2 billion (10.7%).

Among regions, NCR topped the labor payments amounting to PHP31.6 billion (79.6%). Central Visayas following next with PHP1.8 billion (4.7%) and CALABARZON came in third with PHP1.5 billion (3.8%).

Employees of passenger air transport industry earn the highest

Employees of passenger air transport industry were the highest earners in 2012 with an average annual compensation of PHP998,029. Employees of transport via railways and sea and coastal water transport industry followed with PHP305,184 and PHP297,916, respectively. Workers in inland water transport received the lowest average annual compensation of PHP79,221. Figure 3 shows the leading industries with highest average annual compensation for the sector.

By region, NCR-based workers received the highest average annual compensation of PHP347,779. Employees in Davao region came in next with PHP199,371 while workers in Central Luzon received PHP191,498.

Total income sums to PHP373.1 billion; passenger air transport industry produces the largest

Income earned in 2012 for Transport and Storage sector reached PHP373.1 billion. Establishments with total employment of 20 and over generated PhP359 billion (96.2%) while establishment with total employment of less than 20 accounted for PHP14.1 billion (3.8%).

Passenger air transport industry was the top contributor with revenue of PHP132.0 billion or 35.4 percent of the total. Earning the second place was support activities for transportation industry with PHP124.1 billion (33.3%) followed by sea and coastal water transport with PHP46.0 billion (12.3%).

Regionwise, NCR produced the highest revenue amounting to PHP309.1 billion (82.8%). CALABARZON followed next generating an income of PHP23.7 billion (6.4%) and Central Visayas contributed PHP14.0 billion (3.8%).

Expenses for operating the industry summed up to PHP336.7 billion. Establishments with TE 20 and over spent PHP324.8 billion (96.5%) of the total costs while PHP11.9 (3.5%) were utilized by establishments with TE of less than 20.

Passenger air transport industry incurred the highest cost with almost PHP137.3 billion (40.8%) followed by support activities for transportation with PHP90.0 billion (26.7%). Sea and coastal water transport industry came in third with PHP42.6 billion (12.6%). Revenue and cost distribution for the sector is shown in Figure 4.

Across region, NCR spent the largest as it incurred PHP283.7 billion (84.2%) for operating the industry. CALABARZON and Central Visayas followed next with PHP17.4 billion (5.2%) and PHP12.3 billion (3.7%), respectively.

Income-Expense ratio stands at 1.11

Income per peso expense for the sector was computed at 1.11. Among industries, support activities for transportation industry posted the highest ratio of 1.38, followed by courier activities with 1.27 and other land transport industries with 1.14.

Value added amounts to PHP118.2 billion

In 2012, value added for the sector was estimated at PHP118.2 billion. Support activities for transportation contributed 52.1 percent of the total value added or PHP61.6 billion. Passenger air transport, and sea and coastal water transport industries followed with PHP18.0 billion (15.2%) and PHP12.4 billion (10.5%), respectively. Figure 5 shows the percent distribution of value added for the sector in 2012.

Employees of passenger air transport industries are the most labor productive

Employees of passenger air transport were the most labor productive in 2012 in terms of value added per worker with PHP1.9 million. Industries for transport via railways, support activities for transportation, and sea and coastal water transport surpassed the national average with PHP1.3 million, PHP1.1 million and 0.8 million, respectively.

The sector acquired total gross additions to tangible fixed assets amounting to PHP32.0 billion in 2012. Among industries, passenger air transport industry reported the highest addition to fixed assets with PHP15.0 billion or 46.9 percent of the total. Establishments engaged in transport via railways and support activities for transportation industries ranked second and third with PHP6.9 billion (21.5%) and PHP5.3 billion (16.5%), respectively.

Total change in inventories registers at PHP803.2 million

Change in inventories, defined as the value of ending less the beginning inventory, amounting to PHP803 million in 2012. Support activities for transportation has the biggest change in inventories with PHP400.6 while transport via buses registers the biggest negative value of PHP86.

Subsidies in 2012 amounts to PHP8.4 billion

Subsidies granted by the government to the sector amounted to PHP8.4 billion in 2012. Transport via railways received the highest subsidy amounting to PHP8.4 billion (99.8%). Two other industries, sea and coastal water transport and warehousing and storage received subsidies worth PHP13.5 million and PHP4.5 million, respectively.

Passenger air transport collects PHP53.4 billion in E-commerce

E-Commerce refers to the selling of products or services over electronic systems. Passenger air transport has the biggest share for the industry amounting to PHP52.7 billion.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for Transport and Storage sector for All employment sizes.

The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoral questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.

Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru e-mail.

Legal Authority

The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:

Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.

Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).

Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.

Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.

Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.

Scope and coverage

The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:

1. Corporations and partnerships

2. Cooperatives and foundations

3. Single establishment with employment of 10 or more

4. Single proprietorship with branches

The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.

All establishments with total employment (TE) of 10 or more, and;

All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classificatin (PSIC).

The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012. Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.

Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (PSIC).

The unit of enumeration for the 2012 CPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.

Economic organization (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.

Branch (EO=2) is an establishment which has a separate main office located elsewhere.

Establishment and main office (EO=3) is one where the establishments is located in the same address as the main office and with branch/es elsewhere.

Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.

Ancillary unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.

Legal organization (LO) This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:

Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole propietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).

Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.

Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whatever they are stock or non-stock corporations.

Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.

Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.

Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.

Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.

Industrial Classification. The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size (SZ) of the Unit of Enumeration. The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

The following are the size codes and corresponding total employment used in the 2012 CPBI:

TE Code

Total Employment

TE Code

Total Employment

0

1 - 4

5

100 - 199

1

5 - 9

6

200 - 499

2

10 - 19

7

500 - 999

3

20 - 49

8

1000 - 1999

4

50 - 99

9

2000 & Over

Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of September 30, 2012 was used for the 2012 CPBI.

Sampling Design

Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Response Rate

Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 90.2 percent collection of questionnaires was achieved only on November 2013.

Total response rate for Transport and Storage sector was 93.5 percent (3,096 out of 3,313 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 12 establishments responded online, one submitted in portable document format (PDF) through e-mail and no sample establishment accomplished e-questionaire .

For establishments with TE 20 and over, the response rate was 93.8 percent while that of establishments with TE of less than 20, 93.3 percent.

CONCEPTS AND DEFINITIONS OF TERMS

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of November 15, 2012.

Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.

Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay, and other benefits.

Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.

Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Value added is gross output less intermediate input. Gross output for transport and storage is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost. .

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.

Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

Total assetsare resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.

E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.